Former CFO pleads guilty to embezzlement

Published March 10. 2014 11:00AM

Updated March 10. 2014 11:52AM

Izaskun E. Larraņeta

Publication: theday.com

The former controller and chief financial officer of an entertainment group that owns and operates restaurants and nightclubs at Foxwoods Resort Casino pleaded guilty Friday to embezzling funds from her employer.

Lynn A. Scheufler, 35, formerly Woodstock and currently of Vermont, pleaded guilty to one count of illegally structuring financial transactions as part of an illegal activity of stealing at least $400,000.

Scheufler was the controller and CFO of Big Night Entertainment Group of Boston, which operates three venues at Foxwoods: Shrine Asian Kitchen Lounge and Nightclub, Scorpion Bar, and High Rollers Luxury Lanes and Lounge.

As CFO, Scheufler was responsible for all aspects of the company's finances, including using cash proceeds from the business that had been placed into nightly deposit bags to fill ATM machines in the company's venues.

She is accused of taking cash out of the deposit bags and making unauthorized withdrawals using the company's ATM cards. She concealed the thefts by misstating or altering the company's books and records, according to the government.

The government said that Scheufler, with the assistance of her then boyfriend and now husband, Craig L. Galligan, deposited at least $400,000 in stolen cash into their personal accounts. They made the deposits in increments smaller than $10,000 to avoid triggering bank reporting requirements.

Galligan, 42, pleaded guilty in August to one count of conspiracy to structure financial transactions. He awaits sentencing.

Both Scheufler and Galligan were arrested Oct. 10, 2012, and are currently out on bond.

The matter is being investigated by the Internal Revenue Service – Criminal Investigation Division and is being prosecuted by Assistant U.S. Attorney Michael S. McGarry.